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To start out a business will submit a mortgage application to Community Sourced Capital and pay a price to develop into a member of the portal. The appliance is checked for financial integrity and neighborhood connection, historical past of gross sales and present money owed which may compromise the flexibility to repay the mortgage. Promotional material indicate loans are at zero interest but there are month-to-month fees. Loans must be repaid in three years or less.
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Our greatest challenge has been raising capital to develop the business. Banks are hesitant to take the loans we buy as collateral so we’re centered on raising money from personal buyers. We raised $eighty,000 from a few non-public investors at 20% interest, however we have not found that key associate yet to essentially assist us attract the capital we have to grow and scale up the enterprise model. Right now we’re trying to elevate another $200,000 to purchase extra belongings and reap the benefits of this big market opportunity.